Daenerys Targaryen is the CEO of Snow Dragon, Inc., a wholesaler of environmentally friendly dragon treats (free-range sheep) Daenerys is reviewing her accounts at the end of 20x6, and has created the following aging schedule that displays the amounts ower and the days past due as of December 31, 20x6. Accounts receivable Percent uncollectible He Days Past Due Total 1 to 45 46 to 90 91 to 120 Over 120 $167,500 $95,000 $33,000 $14,500 $11,500 $13,500 18 24 (1 100 1. Use the information that Daenerys has provided above to estimate the balance of the Allowance for Doubtful Accounts as of December 31, 20x6. 2. What is Daenerys' required adjusting journal entry to record bad debts expense on December 31, 20x6 presuming that the Allowance for Doubtful Accounts has a credit balance of $2,500 on the unadjusted trial balance?

Daenerys Targaryen is the CEO of Snow Dragon, Inc., a wholesaler of environmentally friendly dragon treats (free-range sheep) Daenerys is reviewing her accounts at the end of 20x6, and has created the following aging schedule that displays the amounts ower and the days past due as of December 31, 20x6. Accounts receivable Percent uncollectible He Days Past Due Total 1 to 45 46 to 90 91 to 120 Over 120 $167,500 $95,000 $33,000 $14,500 $11,500 $13,500 18 24 (1 100 1. Use the information that Daenerys has provided above to estimate the balance of the Allowance for Doubtful Accounts as of December 31, 20x6. 2. What is Daenerys' required adjusting journal entry to record bad debts expense on December 31, 20x6 presuming that the Allowance for Doubtful Accounts has a credit balance of $2,500 on the unadjusted trial balance?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 54BE

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Question 5As Perry Materials Supply was preparing for the year-end close, their balances were as follows: Accounts Receivable - Dr 146,000 and Allow for uncollectible Accounts - Dr 6,200 Perry Materials uses the aging method and has completed the following analysis of the accountsreceivable:Customer 1-30 Days 31-60 Days 61-90 DaysOver 90DaysTotalBalanceJohnson $4,600 $3,200 $7,800Hot Pots, Inc. 800 1,000 1,800Potter 40,000 550 40,550Harrison 3,600 900 4,500Marx 2,000 50 2,050Younger 65,000 65,000Merry Maids 5,900 5,900Acher 12,000 6,400 18,400Totals $127,500 $13,750 $3,700 $1,050 $146,000Uncollectible percentage 2% 10% 20% 40%Estimated uncollectibleamount $2,550 $1,375 $740 $420 $5,085Required:1. How much will the Uncollectible account expense for the year be?2. What will the final balance in the Allowance account be, after adjusting for uncollectibleaccount expense?
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help with journal entries 32 6 Completed work for Gomez Co. and billed them $3,990. Invoice wasdated November 6.33 6 Received and paid bill from Horizon for phone and internet, $26534 11 The company received the balance due from Alex’s Engineering Co. forfees billed on October 11.35 13 The company received $6,100 balance from Wildcat Services.36 14 The company sold merchandise to Dream, Inc., receiving a 90-day notefor $15,400 with interest of 5% due at maturity. The merchandise costComputer Solutions $9,900.37 15 The company paid salaries and wages to Lyn Addie and RamonaSantana. Lyn Addie worked 11 days’ work at $150 per day, andRamona's semi-monthly pay is $2,850.38 23 The company sold merchandise with a $1,995 cost for $3,120 on creditto Delta Co., invoice dated November 23.39 26 KC, Inc. paid balance of $1,200.
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The transactions completed by PS Music during June 2016 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the businesss operations: July 1. Peyton Smith made an additional investment in PS Music by depositing 5,000 in PS Musics checking account. 1. Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, 1,750. 1. Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2. Received 1,000 on account. 3. On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of 3,600. Any additional hours beyond 80 will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3. Paid 250 on account. 4. Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5. Purchased office equipment on account from Office Mart, 7,500. 8. Paid for a newspaper advertisement, 200. 11. Received 1,000 for serving as a disc jockey for a party. 13. Paid 700 to a local audio electronics store for rental of digital recording equipment. 14. Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: July 16. Received 2,000 for serving as a disc jockey for a wedding reception. 18. Purchased supplies on account, 850. 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22. Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23. Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 2016. 27. Paid electric bill, 915. 28. Paid wages of 1,200 to receptionist and part-time assistant. 29. Paid miscellaneous expenses, 540. 30. Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 2016. 31. Received 3,000 for serving as a disc jockey for a party. 31. Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists music during July. 31. Withdrew 1,250 cash from PS Music for personal use. PS Musics chart of accounts and the balance of accounts as of July 1, 2016 (all normal balances), are as follows: Instructions 1. Enter the July 1, 2016, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column, and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance as of July 31, 2016.